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Wayfair and remote sellers

On June 21, 2018, the United States Supreme Court ruled that a state may impose sales tax collection responsibilities on businesses that have no physical presence in the state (remote sellers). See South Dakota v. Wayfair, 138 S.Ct. 2080 (2018).

Due to this ruling, existing provisions in tax laws in many states immediately became effective and out-of-state businesses became obligated to collect sales taxes (primarily from online sales) and remit them to the states to which the products are shipped.

Following the South Dakota v. Wayfair decision by the U.S. Supreme Court on June 21, 2018, Rhode Island, like many other states, updated its sales tax collection requirements to include remote sellers. This ruling allows states to require out-of-state businesses without a physical presence in the state to collect and remit sales tax on sales made to customers in that state. In Rhode Island, remote sellers that meet certain sales or transaction thresholds are now required to register with the state's tax authority, collect Rhode Island sales tax, and remit the collected taxes to the Rhode Island Division of Taxation. The specific thresholds and regulations are detailed in the state's tax code and guidance provided by the Division of Taxation. This change primarily affects online retailers and is intended to level the playing field between brick-and-mortar businesses and remote sellers.

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Taxes

Wayfair and remote sellers

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Taxes

Wayfair and remote sellers

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